Index finished the week with a SHOOTING STAR below the 20 and 50 MA, this is not good news for the bulls.Currently the INDEX is supported by the 10ma. Break below the 10ma would signal further downside and an official short signal.
BIG GREEN ENGULFING CANDLE suggests further upside for SPY. 8 bars ago we had a lower long tail candle outside of both the BB and KC bands. Although the candle was red the positive TRIX divergence was a sign of a bottom.
NEUTRAL.... INDEX finished the week with another shooting star(could also be an inverted hammer) below the 20 and 50MA. A bearish candle close below the 10MA would most likely signal a downside move for the SPY.The TRIX is currently neutral(rising but below mid-point).
Hello, yes overall it's bearish.The first thing I look for is candle stick patterns.The TRIX like most indicator is a lagging indicator. I like it because it's a smooth and it's very good at showing DIVERGENCES..Currently the TRIX is showing an up move but it does not react well to one bearish candle. On the other hand it's still below the mid-point which is another thing I look for.If the next TRIX bar is longer then the the previous bar and still below mid-point that will confirm the bearish condition.